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Effective Communication in Business

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0% found this document useful (0 votes)
32 views10 pages

Effective Communication in Business

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Uploaded by

gmatimati1
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

COMMUNICATION

Communication
 is the sharing of messages, facts, opinions, ideas and emotions between a receiver and
sender.
 it is the conveying of a message or idea from one person to another in such a manner that
both parties understand the identical meaning.

NB*It can be oral, visual, printed, electronic, diagrammatic and bodily

Definition of Terms

 Encoding – It is when the sender the message tries to establish mutuality of meaning with the
receiver by choosing the appropriate channel or medium and symbol for communication.
 Channel – The means by which the information is transmitted.
 Decoding – It refers to the situation whereby the receiver tries to deduce the meaning by converting
symbols into meaning.
 Feedback – It refers to a situation when the receiver report back to the sender or encoder about the
message communicated.

Noise Communication model Noise

Sender (encoder) message to be sent through Receiver (decoder)


appropriate channel
Encoding Decoding

Feedback

Effective Communication

 Communication is effective if the message is accurately sent, properly received, understood with proper
feedback.
Importance of Effective Communication in a Business

1. It promotes motivation as suggested by Herzberg. With two-way communication, where employees


are able to participate and give valuable information they will be motivated. As a result, productivity
will increase.
2. Builds productive relationships with other external stakeholders, for example, creditors, and
suppliers. This will increase profits.
3. Effective communication helps to solve some of the business problems, for example, conflicts
between departments can be resolved by carrying out meetings, hence better organisational
cohesiveness.
4. With two-way communication, the firm can easily respond to any change in the market for example,
changes in customer preferences, hence sales can be increased.
5. Good communication also helps in promoting coordination between departments. Without
communication, one department might make a decision which can affect other departments.
6. It improves the decisions made by the firm, for example, through consultations the subordinates are
able to give valuable information that the management requires.
7. It strengthens the bonds of unity in the organisation(cohesiveness)

Classification of Communication

a. According to direction

1. Vertical – Is where people from different levels of hierarchy communicate with each other. It can be
downward or upward communication.

Downward communication (from top to down)

It allows decisions by management to be carried out by employees.

 Ensures that action is consistent and coordinated.


 Reduces costs because fewer mistakes would be made.
 Should lead to greater effectiveness and profitability as a result of the above.

Upward communication (from bottom to top)

 It helps employers to understand the employees’ views and concerns.


 It helps managers to keep in touch with employees’ attitudes and values more.
 It can alert the managers of potential problems.
 It can provide managers with the information that they need for decision making and gives
feedback on the effects of previous decisions.
 It helps employees to feel that they are participating and this can motivate them.
 It provides feedback on the effectiveness of downward communication and how it can be
improved.
2. Horizontal communication

 It occurs along the organisational chart between people who have approximately the same status
but different areas of responsibility either through team meetings or committees.
 It coordinates activities, helps solve problems and offer advice.
Common problems

 Different departments may not understand the culture, ways of working, objectives, problems
or technical language of the other department.
 The outlook and objectives of different departments could conflict.
b. According to media

1. Oral communication

 Face to face communication, which involves an oral message being between people talking to
each other.
Advantages

 Allows new ideas to be generated.


 It is direct.
 Easy to understand.
 Can be questioned quickly.
 Can be varied to suite needs of the receiver.
 The sender can use body language.
 It can bring motivation.
Disadvantages

 There may be no written record of what was said which is inappropriate for complicated or
technical matters.
 It can be time consuming.
 Body language may affect the message especially if the sender appears bored.
 People responding must be willing to participate and communicate.
 Body language creates a barrier.
2. Written communication

 This can be through notice boards, letters, memos, reports, diagrams and minutes of a meeting
which provide a permanent record.
 It allows the transmission of complicated data via diagrams.
Advantages

 The same message is sent to many and is faster.


 It can deal with a large audience and is faster.
 Information exists in recorded form.
 It can act as a backup to complicated verbal communication.
Disadvantages

 No guarantee or receipt of understanding.


 It reduces participation.
 It can result in ambiguity of written language without feedback.
3. Electronic media

 It has the benefit of speed and can often be combined with a written record.
 Internet, email use, intranets (internal computer links), fax messenger, video conferencing and
mobile telephones.
Drawbacks

 It may require staff to be re-trained.


 They also reduce human contact and therefore there is a sense of isolation.
 Information technology can also lead to information overload as a result of speed and low
transmission costs.
 The equipment needed to facilitate communication is also very costly.
 On the spot classifications are not possible
4. Visual communication

 This can be used to accompany oral, written or electronic messages.


 Diagrams, charts, pictures and pages of computer images can be used.
 Visual communication is usually used in training and in marketing programs.
Advantages

 More interactive.
 Demands attention.
 Easier to remember.
Disadvantages

 Not always clear.


 Interpretations can vary.
c. According to degree of formality

1. Formal communication

 This communication takes place in the organisation set up. It is official, planned and organised, for
example, written communication, meetings, and memos.
 Officially recognized, and follow the organisation’s structure.
2. Informal communication (Grapevine)

 It takes place in informal and interpersonal contacts among employees.


 Communication is not part of the organisation structure but exists as people socialize at work.
 The grapevine can lead to rumours and exaggerations.
 It is unofficial, unplanned and outside the organisation’s formal channels.
1. One way communication
 Communication does not allow feedback from the receiver. The subordinates just obey with no
feedback.
 It involves communication via notice boards and there are usually no meetings.
 Autocratic leaders usually use it and that method cannot motivate workers since it does not allow
consultation with subordinates.
 It is characterised by high levels of conflicts, labour turnover, lack of motivation and reduction in
productivity.
2. Two way communication

 It is when there is room for feedback from the receiver of the message. It is associated with a
more democratic leadership style.
 It is also enables subordinates to contribute in decision making, for example, by use of meetings,
reports etc.
However, it is much slower than one-way communication and it is due to the long discussions
involved.

Downward communication Upward communication

From higher to lower levels From lower to higher levels

Flow is downward Flow is upward

Directive in nature Non directive

Purpose is to get plans implemented Purpose is to provide feedback


Travels quickly Travels slowly

Orders, instructions, lectures, manuals, handbooks Reports, appeals, suggestions, grievances, protests,
etc. are the main examples surveys are the main examples

Formal communication Informal communication

Official channel Unofficial channel

Deliberately planned and systematic Unplanned and spontaneous

Part of the organization structure Cuts across formal relationships

Oriented towards goals and tasks of the enterprises Directed towards goals and need satisfaction of
individuals

Impersonal Personal and social

Stable and rigid Flexible and unstable

Slow and structure Fast and unstructured

Barriers to Effective Communication

1. Failure in any stage of the communication process

 The medium chosen might be inappropriate, for example, detailed technical diagram being explained
on a cell phone.
 A rage message would result in poor understanding.
 Excessive use of technical language or jargon.
 Information overload – If there is too much information at the decoding, such information will take
long and may be inaccurate.
2. Poor attitudes of sender and receiver

 Accept the message or act upon.


 The sender might have low opinion of the receiver and thus make no effort to ensure clarity of the
message.
 Intermediaries in the channel may deliberately sit on the message or change it in order to demotivate
the receiver.
3. Physical reasons

 Noisy factories are not suitable for communication.


 Geographical distance can limit communication.

Channel/transmission problems Receiver/ Decoding problems


Destruction Noise

Different perception Ignorance

Lack of interest Information filtering

Informative filtering Poor listening skills

Withholding information Attitude

Source evaluation

Solutions to Barriers to Effective Communication

 Ensure the message is clear, precise and adequately detailed.


 Keep the communication process as short as possible.
 Build feedback in the communication channel/process.
 Ensure the channels of communication are known by all in the organisation.
 Use simple language for easier understanding.
 Establish trust between senders and receivers.
 Make sure the physical environment is appropriate for messages to be heard or received in either
way.
Results of Communication Failure

 Poor decision making.


 High level of conflicts.
 Poorly delegated tasks.
 Failure to implement plans.
 High levels of mistakes and errors.
 Withdrawal of cooperation which may result in strikes.
 Low morale.
 Poor quality work.
 Lack of control.
 Conflicts.
Computers in Communication

Information Technology

 It is a collective term for various technologies which covers collection, storage, processing and
communication of information by electronic means.
Advantages of Information Technology Communication

 It increases the volume of information.


 It increases productivity.
 It increases speed of information processing.
 It increases accuracy of information.
Disadvantages of Information Technology Communication

 High cost of installation and running the equipment.


 It is very expensive to train staff.
 It may result in resistance to change.
 It may result in high levels of unemployment.
 There are a number of problems which are caused by breakdown of equipment.
 There is a problem of security confidentiality and data handling.
Internet

 It is a network of networks.
 It is an interconnection of networks through the use of the World Wide Web.
Advantages of Internet

 It can be used to advertise a firm’s products.


 It can be used in the selling of goods and services.
 Information gathering is made quickly and faster through online search engines such as Google
and Yahoo.
 It can be used for effective communication by the use of emails.
 Offers a platform for business transacting.
Disadvantages of internet

 It may include incomplete, trivial and illegal information.


 It can be slow to both connect and use.
 It can produce information overload.
 Security and trust are necessary.
 Workers can waste valuable time surfing the internet.
Email

Advantages of Email in Communication

 Provides cheap and effective long distance communication.


 It offers unlimited potential for personal networking.
 It has a worldwide source of information.
 It is democratic and open to everyone.
Disadvantages of Email in Communication

 It includes incomplete, trivial and illegal information.


 It can be affected by information overload.
 Employees can waste valuable time surfing the net.
Telephone and Fax

Advantages of Telephone/Fax

 Delivery is faster than mail.


 It is possible to send one message to many people with one original copy.
Disadvantages of Telephone/Fax

 It is not always secure.


 It can be used inappropriately.
Human Problems Associated with the Use of Computers in Communication
 Eyesight problems.
 Computer illiteracy.
 Hacking.
 Sleeping problems.
 Computer vision syndrome.
 Suffering from increasing evaporation of tears, blurred vision, double vision, red eyes, eye irritation,
headaches, neck and back pains.
Factors That Affect Choice of Communication Media

 Importance of the message to be communicated.


 Advantages to be gained to the staff.
 Costs involved.
 Speed of communication medium.
 Quantity/size of data to be communicated.
 Urgency of the message.
Communication Networks

 It is a pattern of inter-connected lines.


 It is the system where the message may flow in one direction or in several directions.
1. All Channel Network/Free Flow

B C

D E

 It represents a free flow of communication.


 Every member is allowed to communicate freely with other members
 It provides highest satisfaction.
 It is an unstructured and informal communication network.
 With its participatory style and more open communication, it provides the best solutions to
complex problems.
Disadvantages

 It is slow.
 It tends to disintegrate under time pressure to get the results when operated in a group.
2. The Circles
A

E B

D C

 This shows that each department can only communicate with two departments, for example, A
communicates with B or D and it is not possible with C.
 This type of communication can occur between the middle managers from different departments
but at the same level of the organisation.
Disadvantages
 Decision-making can be slow or poor because of lack of coordination.
3. The Chain

A B C D

 Is when one person passes information to others who then pass it on.
 This approach tends to be the formal approach adopted by hierarchical organisations such as civil
service.
 The main advantage is that there is a leader/coordinator at the top of the hierarchy who can
oversee communication downwards and upwards to different areas of the business.
 One problem may be the isolation felt by those at the bottom of the network.
 Their motivation may be less than others if they feel at their periphery.

4. The Wheel

C A D

E
 A is the head office.
 B,C,D,E are managers from different departments.
 There is a person, group or department that occupies a central position.
 This network is particularly good at solving problems.

5. The Y-Network

B
C D

 It is a centralized form of communication.


 It combines the wheel and the chain communication.
 B passes information to C and D.
 Without B information will not flow.
Grapevine

 Informal communication that ignores the formal channel.


 It spreads rumours or gossip at all levels in an organization.
 It is haphazard or spontaneous in nature.
Disadvantages

 It carries incomplete information within the organization.


 It can be a chief source of conflicts within an organization.
 It can be a source of strikes.
 May spread harmful gossip, which is disruptive to the organization.
Benefits of Grapevine in an Organization

 It is a source of social relationships and moral boaster at work.


 Gives vital feedback in the organization.
 Social problems can be solved through grapevine.
 It acts as an important source of communication especially in times of change. It keeps everyone
informed
 It complements the formal system by filling in information gaps.

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